IP commission bought into line by Friends Life
Friends Life has increased the commission advisers will receive on income protection policies to bring it in line with critical illness and life products, the insurer has announced.
Steve Casey, head of marketing and individual proposition development, said the change demonstrated the firm’s commitment to individual protection.
He said the insurer could not reveal the commission rates but said they would now be the same level as that paid for CI and life insurance as recognition for the level of work required by advisers.
Mr Casey said: “We all understand the detailed work required by IFAs in advising on IP policies as there is a degree of complexity involved. By bringing IP commission levels into line with those for CI we are recognising the time and effort taken by intermediaries to advise on this vitally important product.
“All too often advisers talk of the need for IP to be understood but there are concerns on the amount of work required in getting a policy on the books.”
Peter Chadborn, director of Essex-based IFA Plan Money, said: “It is sensible to have the same remuneration levels, and therefore the same incentives, across all product lines as it helps to prove non-bias if a particular product is being recommended ahead of another.
“As an example, many years ago we decided we would take the same remuneration whether it be an open-ended investment company, Isa or investment bond. It is good to see someone in the protection space is applying this theory.”